Title
a. Approve and authorize the Contracts/Purchasing Officer to sign an Agreement between the County of Monterey and Pacific Health Alliance (PHA) for Third-Party Administration (TPA) of the County’s Self-Insured Dental Plan per Request for Proposals (RFP) #10719 with the initial Agreement term beginning January 1, 2020 through December 31, 2024, including the option to extend the Agreement for up to three (3) additional one (1)-year periods; and
b. Authorize the Contracts/Purchasing Officer to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement rates of more than ten percent (10%).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to sign an Agreement between the County of Monterey and Pacific Health Alliance (PHA) for Third-Party Administration (TPA) of the County’s Self-Insured Dental Plan per Request for Proposals (RFP) #10719 with the initial Agreement term beginning January 1, 2020 through December 31, 2024, including the option to extend the Agreement for up to three (3) additional one (1)-year periods; and
b. Authorize the Contracts/Purchasing Officer to sign future Amendments to the Agreement where the Amendments do not significantly change the scope of work or cause an increase in the Agreement rates of more than ten percent (10%).
SUMMARY/DISCUSSION:
On behalf of the Human Resources Department, the Contracts/Purchasing Office released Request for Proposals (RFP) #10719 on August 1, 2019 for a third-party administrator of the County’s Self-Insured Dental Plan. Pacific Health Alliance was selected by the Selection Panel based on the evaluation criteria listed on the RFP.
Approval of the recommended actions will enable the County to continue working with Pacific Health Alliance as the Third-Party Administrator of the County’s Self-Insured Dental Plan, as well as enrollment services for the Consolidated Omnibus Budget Reconciliation Act (COBRA) participants. Current enrollment is 4,693 active employees, 49 COBRA participants, and 373 retirees. At the current rate of participation, the monthly administration fee for all enrolled participants will be $19,280 per month or approximately $231,365 per year.
The TPA fees for the dental plan are part of the costs used by the Benefits Actuary to determine the monthly premium rate that should be charged for the dental insurance. The dental insurance premiums are paid by departments for employee-only coverage and by employees for dependent coverage. COBRA participants and retirees pay 100% of their premiums.
OTHER AGENCY INVOLVEMENT:
The Contracts/Purchasing Office coordinated the RFP. The offices of the County Counsel and Auditor-Controller have reviewed and approved the Agreement as to form and legality and fiscal provisions, respectively.
FINANCING:
The costs associated with this action are included in the Benefits Internal Services Fund (specifically in the Dental Unit).
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The recommended action addresses the Board of Supervisors’ Administration Strategic Initiative. The proposed action will provide for the continuation of a quality dental plan for County employees in support of the County’s commitment to meeting the Board’s initiative in attracting, recruiting, and retaining a diverse, talented work force that supports the mission of Monterey County.
__ Economic Development
_x_Administration
__ Health & Human Services
__ Infrastructure
__ Public Safety
Prepared by: Jose L. Tapia, Finance Manager x5268
Approved by: Irma Ramirez-Bough, Director of Human Resources, x5043
Attachments:
Board Report
Agreement between County and PHA